| The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have collaborated on a joint Project Facility to support replicable, scalable and potentially transformative renewable energy projects in developing countries. ADFD committed USD 350 million in concessional loans, over seven annual funding cycles, to renewable energy projects recommended by IRENA.
The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have collaborated on a joint Project Facility to support replicable, scalable and transformative renewable energy projects in developing countries. ADFD committed USD 350 million in concessional loans, over seven annual funding cycles, to renewable energy projects recommended by IRENA. Projects were selected for funding in January 2014 in the first cycle.
The sixth cycle will receive summary applications between 16 November 2017 and 15 February 2018.
HOW IT WORKS:
Applicants are first asked for an Executive Project Summary, which must be submitted by 15 February 2018 in the sixth cycle. The applications are evaluated by an independent, international Panel of Experts that shortlist
projects based on technical feasibility, economic/financial viability and socio-economic and environmental impacts. The proponents of shortlisted projects are then asked to submit Full Project Proposals, including a full economic feasibility study, in May of each annual cycle. The Advisory Committee, appointed by IRENA members, assesses the projects to ensure alignment with national development priorities, geographic spread and diversity of technologies. ADFD makes the final selection of projects from IRENA’s recommended list by December of each year. After this, ADFD signs bi-lateral agreements with government officials for the selected projects.
The ADFD sovereign loans cover up to 50% of the project costs with the remainder needing co-financing. Co-financing can come from any sources including government, development funds and the private sector. IRENA can share the application with other funds for co-financing, if requested. Applicants can also register on the IRENA Sustainable Energy Marketplace to explore co-financing opportunities.
Projects submitted for funding to the IRENA/ADFD Project Facility must meet the following requirements:
• Projects deploy renewable energy as defined in the Statute of IRENA, including bioenergy, geothermal energy, hydropower, ocean energy, solar energy, and wind energy.
• Projects must be at feasibility study and pre-implementation stage i.e. prior to tendering and procurement execution.
COUNTRY LEVEL CRITERIA
• Projects must be submitted by Members of IRENA, Signatories of the Statute, or States in Accession, which are developing countries on the OECD “DAC List of ODA Recipients”.
• Projects must have the support and prioritisation of the host government and
be able to obtain a sovereign government guarantee.
PROJECTS SELECTED FOR FUNDING
• Since January 2014, ADFD loans worth USD 189 million have been allocated to 19 renewable energy projects.
• IRENA/ADFD backing has helped to leverage over USD 387 million from other funding sources for remaining project costs.
• Around 100 MW of renewable capacity is set to come online.
• Over one million people will benefit from increased access to energy and improved livelihoods.